How FinTech Is Improving the Lives of Immigrants

The modern world is truly global. In fact, in 2015, 244 million people were living in countries that were not their place of birth. For developed nations, which tend to intake a large percentage of migrants, these new additions to the labor market can keep the economy moving, which is why the immigrant population is an important section of the market to target.

We are all immigrants, our homeland all the Earth.

Even though immigration has long been part of North American culture, the Big Banking system has never known how to deal with the complications of the immigration process. With no credit history, assets or federally-mandated ID in their new country, immigrants are unable to secure loans to help them plan for their future.

Once again, FinTech is ready to step in and save the day.

Amber Financial Services is one such company coming in to help immigrants settle in their new home. The CEO, Cindy Chen, was compelled to create the startup after she and her husband had to fight to get a loan in Canada, despite having assets in China. With a simple three step online application process, the application can be fully processed in just 30 minutes—good news for anyone anxious to start building their new life in an unfamiliar country. And unlike the Big Banks, Amber Financial Services accepts past bank statements from other countries as part of the loan qualification process.

The company has already raised $5 million from private investors and has processed over $25 million in loans. The aim, Chen says, is to process $100 million by the end of the year, fantastic news for the hundreds of millions of immigrants that cross our borders every year. And despite the stigma that might come with the lack of national credit, Chen says no one has defaulted on their loans.

With the changing climate and ever-increasing instability, migration will only increase and companies that provide services to this section of the population will find themselves with a very grateful and hungry customer base. The old systems, however, still hold tight to old rules and leave these new countrymen (and -women) to struggle without help. If there was any clearer sign that the Big Banks are past their prime, I don’t know what it would be. Truly the new world reality needs an updated banking system.

 

How FinTech Will Lead Financial Literacy in Teenagers

FinTech Knows How to Teach Your Teen Aout Finance

The teenage years are widely thought to be the hardest years to manage, as teens’ need for space and freedom conflicts with parents’ need for safety and security. Although these years are stressful, they also have the potential to be the time when vital life skills are perfected. Ensuring teens learn the skills needed to manage their finances means parents can feel more secure as they become more independent and leave the nest.

Although it may seem like finance is an area teenagers would be loath to learn, a MediaCom study found that 68% of teenagers agree that starting to save early on in life is important. Having grown up in a recession, they know the importance of finance and (having witnessed the damaging effects of the Big Banks) they are the perfect audience for new FinTech initiatives designed to impart knowledge.

Moneythink and its app MoneythinkMobile were created to help teenagers learn finance skills. The app uses concepts and systems that are part of today’s teens’ lives—emojis, hashtags, social media, etc.—in order to relay important financial information in a way teens can understand and retain. In fact, it calls itself “a gamified Instagram for finances.” Various challenges are given to users and these challenges put them face-to-face with their spending habits and the consequences of these habits. By creating the app, Moneythink has expanded its program to include any teen wanting to learn, even if they are not in range of Moneythink’s campus classes.

A healthy economy and society needs people who are financially aware. Expecting that people are magically going to understand finance as soon as they reach the legal age is a sure recipe for disaster, and FinTech understands this. Creating systems that get teens interested in money and teach them the skills needed to grow into financially-responsible adults is a great way to ensure that future generations will have economies that thrive.

The 2008 Financial Crisis showed that Big Banks care less about a healthy economy than raking in massive profits and the younger generations know this. In fact, 70% of young adults would rather go to a dentist than a bank. What does this mean? Once these younger generations start to come into their own and start fully contributing to the economy, they will turn to FinTech as it offers financial services that truly meet their needs and they feel much more comfortable trusting these companies.

 

 

How FinTech Will Lead Financial Literacy in Children

Three children holding money

 

At first, children may not seem like a segment of the market FinTech should approach. After all, kids don’t have jobs or disposable income, so why would the effort prove fruitful?

In reality, however, children spend over $50 billion annually. As many are taught the importance of money early on, providing them services tailored to their needs means you are introducing yourself to the future powerhouses of the marketplace early on and likely cultivating a sense of brand loyalty. (Over 25% of brand loyalty carries over from childhood to adulthood.)

FinTech does not overlook the importance of the youth market and understands the importance of teaching children about money and finance. By providing them with services tailored to their needs, children start the groundwork needed to become financially responsible members of society.

Osper is one such company tailoring its services to the youth market. Calling itself “Mobile banking for young people,” it’s a pre-paid debit card and app that is available for children as young as 8. Unlike traditional bank accounts, Osper provides parents the opportunity to control how much gets spent and which merchants the children can patronize, allowing the children a chance to gain a certain degree of independence while parents still know where the money is being spent. Also, the card is set up to not work in age-inappropriate sales (casinos, bars, massage parlors, etc.), creating another level of protection for parents who want to give their kids a level of independence but worry about their choices.

The Australian startup Pennybox is another company that understands the importance of the youth market. Cofounded by Reji Eapen and Adam Naor, Pennybox is an app that allows children to track and save their pocket money. Parents can log in and list chores with the corresponding reward, with the money being added to the child’s account once the chore is completed. Children can track how much they are earning and request a cash out when they want the funds.

Going further than just teaching the younger generation about saving, future versions of Pennybox will include an option that allows kids to set aside a portion of their earnings for a charitable cause. An app that teaches kids both financial smarts and a sense of charity. What could be nobler than that?

I know the importance of financial literacy and, with two young children of my own, I am grateful to see the work FinTech is doing to create financial programs for the younger generations. These programs teach children vital skills that they can continue to hone as their access to money and the marketplace increase. They will grow into financially-sound teens and adults, adding to their financial knowledge as the years go by (as it should be done).

Here’s One Way FinTech Will Win the Banking War

Man holding out money

 

One of the best ways to succeed in business is to find a section of the market that is being overlooked and offer your services.  With less competition and the loyalty that will come from customers happy to finally have their needs acknowledged, you can create a solid base for your company (then, if you choose, expand from there into larger markets).

FinTech understands this concept and is using it to its advantage. By offering financial services to sections of the population that tend to be ignored by the Big Banks and have to resort to the unscrupulous payday loan businesses, these companies are offering needed services and contributing to FinTech’s growing dominance of the financial sector, not to mention doing a great service for a large section of the population.

LendUp is one such service. Stating that their aim is “to provide anyone with a path to better financial health,” the company offers online loans and doesn’t require a good credit score to obtain financing. As well, they offer free education courses (presented through videos) that aim to teach (potential) customers about the art of saving and building credit. The company has been called one of the most innovative companies in personal finance and seeks to build a company that is straightforward and efficient about its fees, a major plus for people not well versed in the financial market.

Another company seeking to serve this section of the market is Oportun. Since 2006 they have been serving what they call “credit invisibles,” using their own data analytics to score the “unscoreables” and offering loans—ranging from $300-$7000—to these (mostly) low-to-moderate income customers. Offering realistic payment terms and affordable loans, they have helped more than 770, 000 customers and have saved them approximately $345 million in interest and fees.

Although it is a new entrant in the marketplace, FinTech’s ability to offer products and services that better the lives of so many different sections of the world’s population is a clear indication that it is a powerhouse to watch. Soon a large percentage of the world will be loyal FinTech customers and the Big Bank monopoly will be a thing of the past.

FinTech and Robo-Advisors Are Changing Investing

Plant coming out of coins

 

We all know that machines and technology have dramatically changed the work world, speeding up our production (and leading to the dawn of mass production) and eliminating human jobs in one area while creating new ones in a different area. Until recent years, however, this radical change has mainly been felt in the manufacturing section of the work world. Many office workers have enjoyed the bonuses that came with technology while believing that a computer could never replace the human aspect of their job.

Enter robo-advisors, programs designed to analyze your needs and wants and then invest your money according to that algorithm. This new FinTech version of investment is attracting a large amount of attention from businesses and investors.

Favored by millennials and other tech-savvy generations, robo-advisors are much more economical and private, perfect for those who want to enter the market but do not want to pay the fees associated with wealth management firms. Perhaps the even greater value (in today’s busy 24/7 society) is the availability of robo-advisors. As the system exists online, it is reachable at all hours of the day and can be accessed anywhere there is internet access, giving people the chance to check in everywhere from the board room to the bedroom. For young and/or first-time investors, another bonus is the fact that robo-advisors tend to have no minimum balance, meaning those with limited capital can still start creating a portfolio.

Betterment entered the market as one of the first robo-advisors. Although the fee depends on the size of the account, there is no minimum deposit. One of the major pluses of this robo-advisor is the presence of easy to use tools to help make the stocks/bonds allocation decision.

WiseBanyan is another robo-advisor. This option has the bonus of charging no base fee, stating that “investing should be a right—not a privilege.” Add-ons cost extra, but this option allows users the chance to specifically tailor their advisor to suit their needs.

Perhaps the most unique option is Blooom. Specializing in retirement accounts, users connect their 401(k) to the system, which analyses their investments. The conclusions are shown through the image of a flower: A flower in full bloom means the investments are healthy, while a wilted flower suggests changes need to be made.

For the younger generations just entering the investment field or seasoned investors who have been burned by advisors, robo-advisors are an innovative new way to look at the stock market. Yet again, FinTech is coming in and changing the game for the better.

FinTech Will Change the Way You Shop

Shopping cart on a laptop

 

Shopping is a concept and activity unique to humans (I think it is safe to say that no other member of the animal kingdom is trading currency for material goods) and it has changed radically from its earliest appearances. Bartering, which is how the concept of shopping began, first came into play 150, 000 years ago. Of course, bartering evolved into the more familiar concept of trading currency for goods, and shopping was born. Markets started becoming commonplace, and this structure evolved into stores and shopping centers.

As with so many aspects of our lives, then the internet came in and changed the game. Online shopping is currently being done by 1.5 billion people worldwide, and by 2019 that number will grow to 2 billion digital buyers. This ever-growing marketplace is great news for FinTech, as these shoppers need an easy and safe way to pay for their purchases and will happily patronize companies that make the transaction process painless. Many FinTech companies have stepped up to this challenge and are reaping the rewards.

Adyen is one of the leaders in this field, posting a $50 billion transaction volume in 2015 and earning a revenue of $350 million. Used by modern juggernauts like Groupon, Netflix and Uber, it allows companies to integrate various forms of payment (in-store, online and mobile), giving them the opportunity to provide the best and most adaptable service to all their customers with the least amount of hassle.

The company services a large range of categories, ranging from retail to airlines to ticket sellers. One of the major pluses is it simplifies the exchange process, allowing companies to offer their products on an international scale while Adyen works on the conversion process. Plus, Adyen has systems in place to limit fraud, a must in today’s risky business world, and increase approval ratings of transactions. By operating on such a wide scope, Adyen truly services the world’s needs.

Braintree—which lists itself as a PayPal Company—is another company seeking to profit from the ever growing online marketplace. By offering numerous payment options—from bitcoin to credit cards to Apple Pay to PayPal—Braintree gives consumers choice when it comes to sending payment. Prior to the dawn of FinTech, PayPal was the giant in the field of online payment, so this venture into the FinTech field is a good indication of how the market is moving.

Online shopping is easy and convenient (not to mention anonymous), so it’s obvious why more and more people are turning to this form of retail. Now, thanks to FinTech, the process is even easier. It’s a safe bet to say that 2 billion by 2019 statistic is low-balling the projection.

 

For more information, download our free ebook at http://leadervest.com/e-books/

 

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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech.‎ We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.

The Battle for Big Business: FinTech vs Crowdfunding

Technology is changing business

 

Crowdfunding is, in many ways, considered a modern form of thinking and financing. The truth is that books have been funded this way for hundreds of years and war bonds could be considered a form of crowdfunding, but the creation of the term and the popularity of its technique has really only come into play within the last generation.

The same could be said for FinTech: Computers started being used in the finance world in the 1950s and investing is a very old concept, but FinTech as a term has only started being commonly used in recent years.

Perhaps not surprisingly, crowdfunding and FinTech are heavily interlinked. They run on the same notion: Take out the element of Wall Street (and untouchable corporate heads) and give the power back to the people who really want to make a positive change in modern society. They both eschew paper money for the transferring of funds via technology.

Yet although they are linked, they also have the potential to find themselves in direct competition with each other. Both are new visions for the concept of financing, an alternative to the Big Bank system. Which, then, should garner your attention and your business?

When it comes to the scale of the project and the impact it will have on the world at large, FinTech is the much stronger warrior. In fact, in terms of the way technology is moving, crowdfunding will very soon be nothing more than a subsect of the FinTech Empire. After all, FinTech investments are in the billions and the technology is directly affecting people worldwide.

FinTech is the element that is truly changing the industry and will emerge as the winner in the FinTech-crowdfunding battle for supremacy. Both will retain a place in society, but FinTech will be seen by future generations as “that moment when everything changed.”

 

For more information, download our free ebook at http://leadervest.com/e-books/

 

_____________

Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech.‎ We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.

Venture Capitalists Agree: Invest in FinTech

The 2008 Financial Crisis was an outright devastation for many, wiping out their savings and destroying their faith in a financial system that had been a natural part of their life for so long. Yet after the crisis faded, little really seemed to change in the daily business of the big banks.

This should be a worry to anyone who has investments or a stake in the banking field. Although the markets did rebound after the 2008 crisis, economists are warning that another crash is set to arrive in 2016. In fact, just in the first weeks of 2016, NASDAQ dropped 15% while DJIA lost 8%. Although these markets rebounded, the instability is still evident.

At the same time, however, the FinTech market is steadily growing. The worldwide adoption rate of FinTech in the last six months is 15.5% and, considering the most common reason for not using FinTech is the simple lack of knowledge of its existence, this adoption rate will grow as more people become aware of what FinTech offers.

The 2016 FinTech market continues to look bright, with funding holding steady and venture capitalists investing in FinTech entrepreneurs and startups. This is very important for anyone playing the stock market, but perhaps it holds an extra importance to those who are planning to retire on the strength of their investment portfolio.

This is not the only way FinTech is helping with retirement crises. Newer generations are still planning ahead and FinTech has ways to help them with their goals. Several startups have emerged, ready to do away with many of the issues plaguing the savings systems set up by the previous financial system.

The primary issue, naturally, is the 401(k) and the new FinTech companies offer alternative options (described as “simplified,” “elegant” and “affordable”), allowing workers to choose which method best appeals to them when funding their retirement, giving workers a sense of control when looking at their investments.

The largest company, Betterment, also offers tools and guides in order to help clients learn how to manage their retirement plans.

Retirement is the dream of most workers, the reason a lot of people make it through their years of work and it is very important to ensure that you have the funds available to you when it becomes your time to say goodbye to the rat race. FinTech is ready to step in and help where the big banks have failed.

 

An old couple relaxing on the beach

 

For more information, download our free ebook at http://leadervest.com/e-books/

 

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leader3

Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech.‎ We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.

Millennials and FinTech Will Solve the Work/Life Balance

scales

 

For many people, the work/life balance is an important notion that ends up seeming more like a dream. Even though we want to spend time on ourselves or with our families, the stresses of our careers and the modern work world end up taking precedence.

According to a 2015 PCMA study, 38% of employees missed important life events because of their career and 57% say they can’t even guarantee a quiet family dinner without work interruptions.

Not surprisingly, millennials want to change this balance. And FinTech companies, eager to enlist their talents, are changing the workplace to better suit the needs of this demographic. By offering, for example, flexible hours, FinTech startups can attract talent without necessarily being able to offer the high salaries many major banking institutions provide.

One example of a company striving to create a healthy work/life balance for its employees is Easy Pay Direct. Launched in 2006 and led by Brad Weimert, the company says it will “strive to be the most pleasant people you talk to.” In order to create a good environment and an upbeat staff, the company has weekly happy hours and social events designed to blow off steam and cultivate teamwork (i.e. paintball). In February, however, Weimert went one step further and gave his employees a free day to go enjoy life.

On February 29, employees of Easy Pay Direct were encouraged to go and do something that made them happy, either with their family, friends or just on their own, something they haven’t been able to do because of their work responsibilities. Although this offer of an extra day off may seem like a concept that would never make it past the idea board at Fortune 500 companies, Easy Pay Direct used it to create a healthier and happier work environment.

It’s been said that happy workers mean happy customers. Given this logic, it makes sense that companies should start to shift their thinking to a way that creates happy and healthy staff members. As FinTech is as industry that is at the cutting edge of technology and is leading a new world order, it makes sense that this is the industry leading the way in the new work world.

 

For more information, download our free ebook at http://leadervest.com/e-books/

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leader3

Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech.‎ We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.